WE CAN ONLY FINANCE PURCHASES MADE IN THE UK BY UK COMPANIES OR INDIVIDUALS

Products Available

There are three types of finance products available Asset Finance

When commercial business organisations, whether sole trader, large corporations or from
the public sector, wish to invest in tangible assets, they usually need an affordable, secure means of finance.
Asset Finance is the most common source of finance for businesses, after bank overdrafts and loans.
The two main forms of Asset Finance are Hire Purchase and Leasing

Hire Purchase (HP)
Hire Purchase is a well established method of financing for companies that wish eventually to take ownership of
business assets.
The finance company buys the asset on behalf of the customer, who pays an initial deposit. The remaining balance,
plus interest, is then paid over an agreed period. During this period, ownership rests with the finance company,
who is effectively hiring use of the asset to the customer. Once the final payment is made, ownership transfers to
the customer.

Leasing
Under a commercial agreement, the leasing company (known as the lessor) buys and owns the asset.
The customer (or lessee) then hires use of the asset, paying rental over a fixed period. At the end of the contract,
the customer usually has a choice of extending the lease, buying the asset or simply returning it to the lessor.

Types of Leasing

There are two main types of lease: Finance Leases and Operating Leases.

Finance Leases
Under a finance lease, the finance company owns the asset throughout and the agreement covers a set period –
considered to be the full economic life of the asset. Often, there is an option to continue leasing at a reduced,
or ‘peppercorn’ rate, at the end of the contracted period.
As you are not the owner of the asset, you cannot sell the asset during the rental period.
The finance company can claim the writing-down allowances and possibly pass this benefit to you in reduced rentals.

Operating Leases
An operating lease runs for less than the full economic life of the asset, and the lessee is not liable for the
financing of its full value.
The lessor carries the risk associated with the residual value of the asset at the end of the lease.
This type of lease is often used when the asset is likely to have a resale value, for example, Refrigerated vehicles.
The customer gets the use of the asset, sometimes along with other services. Operating leases are particularly
attractive to companies that frequently update or replace equipment and want to use equipment without ownership.
The most common form of operating lease in motor finance is contract hire, particularly in the provision of vehicle
fleets.
Please ask us about this if you are considering this type of finance arrangement (contracthire@coolmarket.co.uk)

Benefits of Leasing

Asset finance (leasing or hire purchase) is a very flexible way of raising funds.

The advantages include:
Assets and capital equipment can be paid for from the revenue they earn as you are using them

Rates can be as competitive, or even better, than bank funding rates because of the security provided by the asset

Longer-term options can be available, better than many bank loans - typically 3 to 5 years

Fixed rates are available, making budgeting easier over the period of the loan

It is generally non-cancellable by the lender, providing certainty to businesses

Asset finance offers real value to businesses with limited capital, or those that need to manage their cash flow.

It is highly accessible, as it is secured - largely or entirely - on the asset being financed.

It can be very cost effective, as the provider can often buy assets lower, and sell higher, than an individual business. Companies can choose to leave the acquisition and disposal of equipment to the experts

In a recession, leasing is particularly well positioned to help businesses when most have low taxable profits

Depending on the situation, companies may benefit from tax advantages

Whatever your need, to buy something different or to finance what asset you already have contact us by filling in the form below - alternatively call us on: 0044 (0)7900 433336.

These details do not apply to any particular product which is supplied for sale. This publicity material applies to the UK Trade Descriptions Act (1968). Whilst every effort is made to ensure accuracy, customers are always advised to discuss specific details with the Seller.